diff --git a/api.md b/api.md
index 8e80f38..4a2d257 100644
--- a/api.md
+++ b/api.md
@@ -174,7 +174,7 @@ Types:
 Methods:
 
 - <code title="post /gitpod.v1.EventService/ListAuditLogs">client.events.<a href="./src/resources/events.ts">list</a>({ ...params }) -> EventListResponsesEntriesPage</code>
-- <code title="post /gitpod.v1.EventService/WatchEvents">client.events.<a href="./src/resources/events.ts">watch</a>({ ...params }) -> JSONLDecoder&lt;EventWatchResponse&gt;</code>
+- <code title="post /gitpod.v1.EventService/WatchEvents">client.events.<a href="./src/resources/events.ts">watch</a>({ ...params }) -> EventWatchResponse</code>
 
 # Groups
 
diff --git a/src/resources/events.ts b/src/resources/events.ts
index 68a011a..bc5d412 100644
--- a/src/resources/events.ts
+++ b/src/resources/events.ts
@@ -79,9 +79,12 @@ export class Events extends APIResource {
           { 'Content-Type': 'application/jsonl', Accept: 'application/jsonl' },
           options?.headers,
         ]),
+        stream: true,
         __binaryResponse: true,
       })
-      ._thenUnwrap((_, props) => JSONLDecoder.fromResponse(props.response, props.controller));
+      ._thenUnwrap((_, props) => JSONLDecoder.fromResponse(props.response, props.controller)) as APIPromise<
+      JSONLDecoder<EventWatchResponse>
+    >;
   }
 }
 
diff --git a/tests/internal/decoders/line.test.ts b/tests/internal/decoders/line.test.ts
new file mode 100644
index 0000000..9f45693
--- /dev/null
+++ b/tests/internal/decoders/line.test.ts
@@ -0,0 +1,128 @@
+import { findDoubleNewlineIndex, LineDecoder } from '@gitpod/sdk/internal/decoders/line';
+
+function decodeChunks(chunks: string[], { flush }: { flush: boolean } = { flush: false }): string[] {
+  const decoder = new LineDecoder();
+  const lines: string[] = [];
+  for (const chunk of chunks) {
+    lines.push(...decoder.decode(chunk));
+  }
+
+  if (flush) {
+    lines.push(...decoder.flush());
+  }
+
+  return lines;
+}
+
+describe('line decoder', () => {
+  test('basic', () => {
+    // baz is not included because the line hasn't ended yet
+    expect(decodeChunks(['foo', ' bar\nbaz'])).toEqual(['foo bar']);
+  });
+
+  test('basic with \\r', () => {
+    expect(decodeChunks(['foo', ' bar\r\nbaz'])).toEqual(['foo bar']);
+    expect(decodeChunks(['foo', ' bar\r\nbaz'], { flush: true })).toEqual(['foo bar', 'baz']);
+  });
+
+  test('trailing new lines', () => {
+    expect(decodeChunks(['foo', ' bar', 'baz\n', 'thing\n'])).toEqual(['foo barbaz', 'thing']);
+  });
+
+  test('trailing new lines with \\r', () => {
+    expect(decodeChunks(['foo', ' bar', 'baz\r\n', 'thing\r\n'])).toEqual(['foo barbaz', 'thing']);
+  });
+
+  test('escaped new lines', () => {
+    expect(decodeChunks(['foo', ' bar\\nbaz\n'])).toEqual(['foo bar\\nbaz']);
+  });
+
+  test('escaped new lines with \\r', () => {
+    expect(decodeChunks(['foo', ' bar\\r\\nbaz\n'])).toEqual(['foo bar\\r\\nbaz']);
+  });
+
+  test('\\r & \\n split across multiple chunks', () => {
+    expect(decodeChunks(['foo\r', '\n', 'bar'], { flush: true })).toEqual(['foo', 'bar']);
+  });
+
+  test('single \\r', () => {
+    expect(decodeChunks(['foo\r', 'bar'], { flush: true })).toEqual(['foo', 'bar']);
+  });
+
+  test('double \\r', () => {
+    expect(decodeChunks(['foo\r', 'bar\r'], { flush: true })).toEqual(['foo', 'bar']);
+    expect(decodeChunks(['foo\r', '\r', 'bar'], { flush: true })).toEqual(['foo', '', 'bar']);
+    // implementation detail that we don't yield the single \r line until a new \r or \n is encountered
+    expect(decodeChunks(['foo\r', '\r', 'bar'], { flush: false })).toEqual(['foo']);
+  });
+
+  test('double \\r then \\r\\n', () => {
+    expect(decodeChunks(['foo\r', '\r', '\r', '\n', 'bar', '\n'])).toEqual(['foo', '', '', 'bar']);
+    expect(decodeChunks(['foo\n', '\n', '\n', 'bar', '\n'])).toEqual(['foo', '', '', 'bar']);
+  });
+
+  test('double newline', () => {
+    expect(decodeChunks(['foo\n\nbar'], { flush: true })).toEqual(['foo', '', 'bar']);
+    expect(decodeChunks(['foo', '\n', '\nbar'], { flush: true })).toEqual(['foo', '', 'bar']);
+    expect(decodeChunks(['foo\n', '\n', 'bar'], { flush: true })).toEqual(['foo', '', 'bar']);
+    expect(decodeChunks(['foo', '\n', '\n', 'bar'], { flush: true })).toEqual(['foo', '', 'bar']);
+  });
+
+  test('multi-byte characters across chunks', () => {
+    const decoder = new LineDecoder();
+
+    // bytes taken from the string 'известни' and arbitrarily split
+    // so that some multi-byte characters span multiple chunks
+    expect(decoder.decode(new Uint8Array([0xd0]))).toHaveLength(0);
+    expect(decoder.decode(new Uint8Array([0xb8, 0xd0, 0xb7, 0xd0]))).toHaveLength(0);
+    expect(
+      decoder.decode(new Uint8Array([0xb2, 0xd0, 0xb5, 0xd1, 0x81, 0xd1, 0x82, 0xd0, 0xbd, 0xd0, 0xb8])),
+    ).toHaveLength(0);
+
+    const decoded = decoder.decode(new Uint8Array([0xa]));
+    expect(decoded).toEqual(['известни']);
+  });
+
+  test('flushing trailing newlines', () => {
+    expect(decodeChunks(['foo\n', '\nbar'], { flush: true })).toEqual(['foo', '', 'bar']);
+  });
+
+  test('flushing empty buffer', () => {
+    expect(decodeChunks([], { flush: true })).toEqual([]);
+  });
+});
+
+describe('findDoubleNewlineIndex', () => {
+  test('finds \\n\\n', () => {
+    expect(findDoubleNewlineIndex(new TextEncoder().encode('foo\n\nbar'))).toBe(5);
+    expect(findDoubleNewlineIndex(new TextEncoder().encode('\n\nbar'))).toBe(2);
+    expect(findDoubleNewlineIndex(new TextEncoder().encode('foo\n\n'))).toBe(5);
+    expect(findDoubleNewlineIndex(new TextEncoder().encode('\n\n'))).toBe(2);
+  });
+
+  test('finds \\r\\r', () => {
+    expect(findDoubleNewlineIndex(new TextEncoder().encode('foo\r\rbar'))).toBe(5);
+    expect(findDoubleNewlineIndex(new TextEncoder().encode('\r\rbar'))).toBe(2);
+    expect(findDoubleNewlineIndex(new TextEncoder().encode('foo\r\r'))).toBe(5);
+    expect(findDoubleNewlineIndex(new TextEncoder().encode('\r\r'))).toBe(2);
+  });
+
+  test('finds \\r\\n\\r\\n', () => {
+    expect(findDoubleNewlineIndex(new TextEncoder().encode('foo\r\n\r\nbar'))).toBe(7);
+    expect(findDoubleNewlineIndex(new TextEncoder().encode('\r\n\r\nbar'))).toBe(4);
+    expect(findDoubleNewlineIndex(new TextEncoder().encode('foo\r\n\r\n'))).toBe(7);
+    expect(findDoubleNewlineIndex(new TextEncoder().encode('\r\n\r\n'))).toBe(4);
+  });
+
+  test('returns -1 when no double newline found', () => {
+    expect(findDoubleNewlineIndex(new TextEncoder().encode('foo\nbar'))).toBe(-1);
+    expect(findDoubleNewlineIndex(new TextEncoder().encode('foo\rbar'))).toBe(-1);
+    expect(findDoubleNewlineIndex(new TextEncoder().encode('foo\r\nbar'))).toBe(-1);
+    expect(findDoubleNewlineIndex(new TextEncoder().encode(''))).toBe(-1);
+  });
+
+  test('handles incomplete patterns', () => {
+    expect(findDoubleNewlineIndex(new TextEncoder().encode('foo\r\n\r'))).toBe(-1);
+    expect(findDoubleNewlineIndex(new TextEncoder().encode('foo\r\n'))).toBe(-1);
+  });
+});